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On the unemployment front unfortunately the number of people applying for first time jobless benefits rose for the fifth time in six weeks.
It's -- could prompt the Fed to announce more stimulus when it meets next week.
Joining us now -- it yet that economist with FTN finance self.
About these unemployment numbers up up.
Right right more people getting on and -- -- -- this is the third consecutive week of initial jobless claims hovering right around that 380000 marks a significantly above what we saw.
Just a few months back but more importantly what this does -- reversed that very strong downward trend which had been in place since August 2011 and this was the trend.
It was really the forefront of that optimistic argument that the labor market was on the meant.
Now what we've seen as of latest job creation faltered in March again and we've gone even further in May.
Now with two weeks of June initial claims -- very heightened levels.
It suggests that -- -- for another disappointing report come June why I think that is do you think it was a weather factor -- jobs it you know into January February little -- is a little bit of what we did see and chairman Bernanke talked about those seasonal effects pulling the consumer outspending pulling jobs.
Insuring those into the first quarter but I.
I think what we're really seeing is an underlying decline in momentum.
In the economy which is leading us right around that 2% growth rate.
You know we get is CPI to fell by the most in three years and -- blaming it on gas but I -- This goes to the no inflation argument I suppose well and it can best plays right into what the FOMC has been saying in their most recent statements at that -- price pressures.
Was a result of temporary energy price increases and should prove transitory and in fact that's what we've seen.
I'm the PPI yesterday we saw the second consecutive monthly decline and the CPI this morning it was the third monthly decline pulling that annual rate.
From 2.3 to one point seven.
Which is really important because that moves it into the Fed's target range of one to 2%.
Which then goes to the case well we can't pump more money into this economy because apparently we are handling inflation sure so this leaves the door wide open for additional accommodative policy -- Bernanke is never taken QE3 off the table or at prayer around about right purchases.
What he said was he wants to see -- mandates under pressure so too high unemployment and too low inflation.
Now that we've seen that annual rate pushed below that 2% ceiling.
It's very likely that we do see that third round -- you think we're gonna get more money mom money -- money I do I know whether or not that comes in June or they give us more of a specific timeline of when we will see that third round.
That's to be debated but I think this leaves the door very much open for additional accommodative policy ten seconds consumer sentiment tomorrow up good or bad you know consumers are very frustrated right now the tepid pace of jobs.
With the uncertainty surrounding the global picture and the looming fiscal crisis so it's very likely that we see a decline.
And consumer sentiment despite falling gasoline prices I would think so although market was certainly be happy to see more stimulus certainly shape -- -- Lindsey -- -- financial -- them.
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